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POLITICS

Macron to restart discussions over France’s controversial pension reforms

The potentially explosive subject of pension reform is back on the table in France, with president Emmanuel Macron hosting a meeting with unions on Tuesday to discuss changes to the country's retirement system.

Published: 5 July 2021 15:18 CEST
Macron to restart discussions over France's controversial pension reforms
A protest against Macron's proposed pension reform in March 2020. Photo: Bertrand GUAY / AFP.

The aim of the meeting is to “discuss solutions to the great challenges”, including “building strong and sustainable growth”, “promoting the economy’s green transition”, and “preparing for demographic challenges”, the Elysée told AFP, but it’s the topic of pension reform that is already garnering the most attention.

Hundreds of thousands of people took to the streets in December 2019 and January 2020 to protest over planned pension reforms, and a series of transport strikes brought the country to a halt.

The government was able to push the bill through parliament despite this fierce opposition, before shelving the reform at the start of the pandemic to focus on the country’s economic recovery.

However the issue is now back on the table – but reports suggest that rather than simply discussing when the previously agreed reforms should begin, Macron intends to introduce a different set of reforms.

Last month, Macron said he had no plans to pick up exactly where he left off. “I do not think that the reform as it was originally envisaged can go ahead as such,” Macron told reporters.

“It was very ambitious and extremely complex and that is why it generated anxiety, we must admit that. Doing it right now would mean ignoring that there are already a lot of worries.”

What changes?

It’s not clear exactly what would be changed in the new proposals

Had it been implemented, the 2019 reform plan would have created a universal points-based pension system to replace the country’s 42 different pension schemes.

It would also have created a “pivot age”, meaning the legal retirement age would remain 62, but most people would have to work for two more years to be entitled to a full pension, as well as abolishing some of the ‘special regimes’ that allowed, for example, train drivers to retire at 55.

Last week, Les Echos revealed that economy minister Bruno Le Maire is among those in government now pushing for a total change to the retirement age – moving it from 62 to 64.

The change would be gradual, with those born in 1961 retiring at 62.5 in 2022-2023, and every subsequent age group working six months longer, until those born in 1964 can retire at 64 in 2028-2029, according to Les Echos.

READ ALSO How do pensions in France compare to the rest of Europe?

What do other politicians say?

Apart from the push from those within his own party, Macron may also be feeling the pressure ahead of the presidential elections in 2022.

The Republican party’s Xavier Bertrand, who is seen as a potential threat from the centre-right, told Le Point: “By 2028-2030, we’ll need to work two years longer, until 64, and if life expectancy continues to progress in the following years, we’ll need to go up to 65.”

What do the unions say?

Shockingly, they are not happy.  Ahead of Tuesday’s meeting with the President, some union leaders have warned that they will resist any attempts to raise the retirement age, at a time when the health crisis has caused unemployment to rise.

“If you keep those who have a job in work for two more years, you’re closing the door to those who are looking for work,” Yves Veyrier, head of the Force ouvrière union told Le Parisien.

Speaking to LCI, Philippe Martinez, general secretary of the hard-line CGT union, called the proposed reform “an electoral objective” and said workers would have to mobilise to prevent it should the government decide to pursue the policy.

Geoffroy Roux de Bézieux, head of the MEDEF employers’ union, said he supports delaying the age of retirement, but added that the reform should not be rushed through.

“To implement this reform, you need political capital,” he told Les Echos. “For me, it’s a debate for the presidential election. All the candidates need to position themselves.” 

The legal retirement age was last changed in 2010, when it went from 60 to 62, meaning French workers still retire earlier than most Europeans.

When will we know more?

According to government spokesman Gabriel Attal, Macron will make his plans clear “before July 14th”.

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POLITICS

What does the new government mean for foreigners in France?

France at last has a new government and one of its four main aims is to "control immigration and promote integration" - so what is this likely to mean for foreigners in France, or those hoping to move here some day?

Published: 20 September 2024 10:36 CEST
What does the new government mean for foreigners in France?

After two weeks of intense negotiation, on Thursday evening newly-appointed prime minister Michel Barnier announced that he had succeeded in forming a government.

 He also laid out his four main priorities;

  • Improve the standard of living for the French and the workings of public services, especially schools and healthcare
  • Guarantee security, control immigration and improve integration
  • Encourage businesses and agriculture and build upon the economic attractiveness of France
  • Get public finances under control and reduce debt

He is set to give his Discours de politique générale on October 1st – this is the traditional speech that a prime minister makes laying out the main policy aims of their government.

So what is this likely to mean for foreigners living in France?

Obviously some of these things will have the same effect on foreigners as any other residents of France, since we all use the same healthcare and education systems.

The first challenge for the new government will be a budget that, as Barnier says, “gets public finances under control”. France is facing a ballooning deficit and the threat of a downgrade from ratings agencies if it cannot get spending under control.

Barnier said earlier in the week that he is “discovering that the country’s budgetary situation is very serious” – most people interpreted this as preparing to announce tax hikes.

No details of these plans have been released, but it is thought likely that extra taxes will be on business and the super-rich rather than any increase in income tax or VAT.

Emmanuel Macron’s centrist Renaissance group briefed the press that one of their conditions for joining the new government was a pledge that any tax increases would not target “the middle classes or working French people”.

Immigration

But the strand of government that is most likely to affect foreigners in France, or those hoping to move here some day, is the pledge to “control immigration and promote integration”.

Again there is no detail on this, but the French government’s most recent bill to “promote integration” introduced language tests for certain types of residency card, while raising the language standard required for other processes.

We know that Barnier himself is strongly to the right on the topic of immigration – in his unsuccessful 2022 bid for the Les Républicains presidential nomination he called for a total moratorium on all immigration into France from non-EU countries.

Barnier said he would organise a referendum if elected, asking voters to approve constitutional changes and the ability of parliament to set immigrant quotas each year.

The exact composition of the new government has not been revealed – it is expected “before Sunday” – but we do know that Barnier has appointed several ministers from within the Les Républicains party.

These are reported to include Bruno Retailleau, who sparked outcry with his comments about immigrants in the context of the 2022 riots.

Speaking about the rioters who were arrested, 90 percent of whom were French citizens, he said: “OK, they’re French, but these are French people in their official identity, and unfortunately for the second and third generations (of immigrants), there is a sort of regression towards their ethnic roots.”

Clearly for some politicians, you can never be integrated enough.

New laws?

Although it’s far too early to think of any specific policies – and the government may not last long enough to actually see any laws passed – the debate around France’s recent immigration bill does provide some clues about the goals of right-wing politicians.

The Immigration law that finally passed in January changed – among other things – conditions for certain types of residency card and introduced expanded language tests, a civics test and a declaration of allegiance to ‘French values’ for foreigners living here.

READ ALSO What changes under France’s new immigration bill

However as the bill progressed through parliament, many right-wing lawmakers attempted to add amendments to toughen it up. In the end, most of the amendments were either voted down in parliament or struck out later by the Constitutional Council, but they do provide a guide to right-wing goals.

Among the rejected amendments were;

Migration quotas – the original bill contained nothing about migration quotas, but a section on this was added in the Senate (which is controlled by Les Républicains). The amendment was vague, setting out only the principle that parliament can set migration quotas – the wording of the text talked about ‘economic migration’, suggesting that these quotas would apply only to people coming to France to work, not students or retirees. The quotas would not affect asylum seekers or people arriving on a family reunification visa.

It called for parliament to have an annual debate on migration, with the ‘objective’ of setting quotas or numbers.

This was one of many amendments that was eventually struck out by the Constitutional Council – although on procedural grounds, not because of its content.

Healthcare restrictions – currently undocumented foreigners who are in France for more than three months are entitled to basic healthcare under the Aide medicale de l’Etat, with costs reimbursed by the State for hospital treatment and medication. The amendment proposed a complete ban on this for anyone who is undocumented or in an irregular immigration situation.

Benefit restrictions – currently foreigners in France can qualify for benefits such as housing allowance or certain family benefits after they have been resident for six months, the amendment aimed to increase the qualification period to five years.

Expelling radicalised foreigners – the law that was eventually passed makes it easier to expel radicalised foreigners by removing certain protections, including the restriction that people who came to France aged 13 or under cannot be expelled once they reach adulthood. The amendment aimed toughen this up still further by allowing the expulsion not just of people who are on terror watchlists, but of people who have “committed a grave and deliberate violation of the principles of the French Republic”.

Toughen asylum rules – various amendments aimed to make it easier to expel failed asylum seekers by reducing the amount of time for appeals and allowing a notice to quit the country to be served as soon as a first application is rejected.

Limit family reunification rights – rules around foreigners in France being joined by spouses or family members would also be tightened up under the amendment, with a minimum stay of 24 months before you can be joined by a spouse or family member, and extra financial requirements.

French citizenship for children born in France – currently children who are born in France to foreign parents are automatically given the right to French citizenship once they reach 18 under the droit du sol principle (although in order to do anything practical like get a passport or ID card they still need to apply for a naturalisation certificate). Several amendments proposed that this no longer be an automatic right and children must “express their will” to get citizenship – presumably through an extra admin procedures.

All the immigration measures listed above would apply to non-EU nationals – anyone who needs a visa or carte de séjour to spend more than three months in France.

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